If you’re short on cash and need to make a quick buck, you may be considering a pawn shop in Perth as an option. But what is a pawn shop, and how do pawn shops work? In this article, we’ll break down the basics of pawn shops and what you need to know before you pawn.
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If you’re short on cash and need to make a quick buck, you may be considering a pawn shop in Perth as an option. But what is a pawn shop, and how do pawn shops work? In this article, we’ll break down the basics of pawn shops and what you need to know before you pawn.
What Is a Pawn Shop?
A pawn shop is a retail store that provides short-term loans in exchange for collateral. A pawnbroker will assess the value of the item you bring in and offer you a loan based on that appraisal. You can also sell items directly to the pawn shop. When you take out a loan, you’ll receive cash and have a certain amount of time to repay the loan with interest. If you fail to repay the loan, the pawn shop in Sydney has the right to sell your item.
What Do Pawn Shops Buy?
Most pawn shops will purchase almost any item of value, including jewelry, electronics, tools, musical instruments, and guns. However, some pawn shops specialize in certain items and may not purchase everything. Before you visit a pawn shop, it’s best to check their website to see which items they’re willing to buy.
Advantages of Pawn Shops
Pawn shops have several advantages over other short-term loan options. Firstly, they don’t require a credit check, so you can still obtain a loan even if you have bad credit. Secondly, if you don’t pay back the loan, it won’t affect your credit score. Lastly, you can get cash on the same day, which is great if you need money in a hurry.
Disadvantages of Pawn Shops
The main disadvantage of pawn shops is the high interest rates they charge. Because pawn shops are regulated by the state, interest rates can range from 12% to over 240% APR. Additionally, pawn shops typically offer only 25% to 60% of an item’s resale value, so you won’t get the full value of your item.
High-Demand Items
Certain items tend to have higher resale value, so you’ll likely get more money if you pawn one of these items. Jewelry, coins, firearms, electronics, power tools, and musical instruments are all in demand at pawn shops.
Items You Can Pawn for $50
Designer sunglasses, lawn mowers, KitchenAid mixers, Beats by Dr. Dre headphones, and leaf blowers are all items that are often worth $50 or more at pawn shops.
Items You Can Pawn for $100
Hoverboards, flat-screen TVs, tablets, Bose speakers, firearms, YETI coolers, Apple watches, refrigerators, GoPros, and power tools can all be worth $100 or more at pawn shops.
Items You Can Pawn To Get the Most Money
If you want to get the most money from your pawn shop loan, you’ll need to pawn an item worth between $835 and $2,000. Jewelry, precious metals, high-end TVs, collectibles, coins, firearms, and vintage technology are all items that can pay off big.
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